Repossessed Property News

Repossessions at a record in auctions (January 29, 2008)

Repossessions at a record in auctions

A record number of repossessed homes are coming under the hammer at property auctions as banks scramble for liquidity amid the credit squeeze and stock market turmoil.

Allsop, Europe's biggest residential property auctioneer, was today publishing its February catalogue, listing 410 lots over two days. Banks or mortgage companies are offering nearly 40% of them as distressed sales.

Gary Murphy, a partner in the firm, said: 'We haven't seen conditions like this since the early 1990s. At the same sale last year, less than 20% of residential properties offered were repossessions.'

A large proportion of the lots on offer are repossessed buy-to-let properties. Murphy said: 'The buy-to-let market has attracted a whole new group of investors in the past 10 years, but many of them have not fully appreciated the pitfalls of property investment.'

One of Allsop's competitors, Andrews & Robertson, has also reported a surge in repossessions. There are more than 50 in its forthcoming auction.

Generally, auctions are the last resort for the distressed sellers or banks and building societies.

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